Homebuyer deposits increase £5,000 year-on-year

Homebuyer deposits rose by an average of £5,000 in the first six months of 2016 compared with the same period last year, despite deposit sizes as a proportion of the purchase price falling by an average of 1% across the country, research from My Home Move shows.

Homebuyers typically purchased homes with a deposit of £55,000, up from £50,000 in H1 2015.

Unsurprisingly deposits in London increased by £18,000, following a 13.6% annual increase in house prices in the capital.

In the North East they fell by 1.78% reflecting the fact that home prices only increased marginally.

Commenting on these findings, Doug Crawford, CEO of My Home Move, said: “The decrease in deposit percentages indicates that the measures introduced by the government to ensure easier lending across the mortgage market, have had a positive impact, especially for those outside of the capital.

“However, while this may sound like great news for homebuyers, the reality is somewhat different. The rise in property prices means that in real terms this decrease actually translates into increase in the majority of regions.

“For those looking to buy in Wales the increase, on average, is only a few hundred pounds, but for those in London or the South East this translates into thousands of pounds.

“For many, their deposit will come from the equity in the property they are selling. However, there are still a large proportion of home buyers who will need to save thousands of pounds more, to make the move onto and up the property ladder.”